Turn Your Generosity Into Lifetime Income
Charitable Gift Annuities
Payments for LifeLearn more about the many benefits of a charitable gift annuity in our FREE guide Charitable Gift Annuities: Gifts That Give Back.View My Free Brochure
When looking for ways to help Grinnell College with our mission, you shouldn't feel like you are choosing between your philanthropic goals and financial security. One gift that allows you to support the College's work while receiving fixed payments for life is a charitable gift annuity.
Not only does this gift provide you with regular payments and allow us to further our work, but when you create a charitable gift annuity with the College you can receive a variety of tax benefits depending on how you fund your gift.
If you fund your gift annuity with cash or appreciated property, you qualify for a federal income tax deduction if you itemize. In addition, you can minimize capital gains taxes when you fund your gift with appreciated property.
And now, you can fund your gift using your. If you are 70½ and older, you can make a one-time election of up to $50,000 to fund a gift annuity. While your gift does not qualify for an income tax deduction, it does escape income tax liability on the transfer and count toward all or part of your required minimum distributions.
Gifts That Pay
Your payments depend on your age at the time of the donation. If you are younger than 60, we recommend that you learn more about your options and download this FREE guide Deferred Gift Annuities: Plan Now, Benefit Later.
Check Out This Potential Scenario
Say that Justin, 66, and Mary, 65, want to make a contribution to the College that will support our work for generations to come, but they also want to ensure that they have dependable income during their retirement years. They establish a $20,000 charitable gift annuity with the College. Based on their ages, they will receive a payment rate of 4.8%, which means that they will receive $960 each year for the remainder of their lives. They're also eligible for a federal income tax charitable deduction of $7,649* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support our mission.
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
For Socially Conscious Couple, Charitable Gift Annuity Is Rewarding Way to Give Back
Vicki Lofquist '71 learned about Charitable Gift Annuity's (CGAs) during her time working at several nonprofit organizations and as the alumni relations and annual fund director for Metropolitan State University.
She put that knowledge into action in 2018 when she and her husband Craig Thiesen set up a CGA for Grinnell College. The cash they donate gives them a charitable deduction, and the College, which invests the money, sends quarterly payments to Lofquist and Thiesen for the rest of their lives.
The funds the St. Paul, Minnesota, couple gave are unrestricted and undesignated, meaning the College can use them wherever the need is greatest.
"If you're looking for a revenue stream in retirement, this is a great way to create that stream and be charitable at the same time," says Lofquist, who received a scholarship when she attended Grinnell. "And unlike the stock market, we know what it's supporting, plus it's not volatile."
See How It Works
Calculate Your Benefits
Submit a few details and see how a charitable gift annuity can benefit you.
- Contact Buddy Boulton at 866-850-1846 or PG@grinnell.edu for additional information on charitable gift annuities or to chat more about the personal benefits of creating an annuity with the College.
- Seek the advice of your financial or legal advisor.
- If you include the College in your plans, please use our legal name and federal tax ID.
Legal Name: Trustees of Grinnell College
Address: 733 Broad Street, Grinnell IA 50112
Federal Tax ID Number: 42-0680387
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. California residents: Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guaranteed by any government agency or the California Life and Health Insurance Guarantee Association. Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department. South Dakota residents: Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance.